Paytm, a fintech company that provides online payment services, has big news. One97 Communications, the parent company of Paytm, has made profit for the first time since its listing. It made a huge profit in the second quarter of fiscal year 2024-25. However, despite this, the company’s stock fell sharply on the stock market. Let us understand why?
Earned profit of Rs 928 crore
First, let us talk about Paytm’s September quarter results (Paytm Q2 Results) and then let us tell you that the fintech company posted a strong profit of Rs 928.3 crore in the second quarter, which it had done in the previous quarter recorded a record loss of Rs 8.389 billion. Paytm posted a loss of Rs 290.5 crore in Q9FY24 compared to the same period last year.
Huge profits can be made from selling the business
Paytm said in a stock exchange filing that in the September quarter it completed the sale of its entertainment ticketing business to online food delivery platform Zomato and earned an extraordinary profit of Rs 1,345.4 crore on the sale. It is worth noting that Paytm sold the above-mentioned business to online food aggregator Zomato in August this year. The total value of the deal is Rs 2,014 crore. “Our balance sheet has been strengthened through this transaction,” the company said.
Outstanding performance but scattered stocks
Paytm shares fell sharply on Tuesday despite stellar September quarter results. Paytm shares closed at Rs 725.85 on the BSE on the last trading day on Monday and opened at Rs 727 on Tuesday, registering a slight gain. However, after the green zone opened, the company’s shares suddenly started falling, falling over 6% during the trading session to reach the level of Rs 669.80. However, after the stock market closed, the pace of decline slowed down, but it still fell 5.78% to close at 684 rupees.
Is this the reason for the decline?
Paytm tasted profit for the first time since its listing, but on an annual basis, the company’s operating income increased by 10.52% in the second quarter to 1,659.5 billion rupees. , if you see it, it dropped by 34.11%. In this case, despite the stellar performance, investors don’t seem too happy. Let us tell you that this year the Reserve Bank of India (RBI) took major action against Paytm Payments Bank, the banking arm of Paytm, after which the company had to suffer huge losses.
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